SINGAPORE/LONDON: Asian spot liquefied natural gas (LNG) prices may have bottomed out as Japanese buyers stepped back into the market to prepare for peak summer demand.
Prices for May delivery rose to around $16.50 per million British thermal units (mmBtu), from $15.70 per mmBtu last week.
Prices had fallen over the past month after topping $20 mmBtu due to limited spot supply and stockpiling after a cold winter. “The Japanese showed interest in committing May cargoes at around $16.50 mmBtu,” said one Singapore-based trader.
Malaysia’s Petronas this week secured around 18 LNG cargoes of Nigerian origin from Portuguese utility Galp Energia in a tender, a source with knowledge of the matter said.
Earlier this month Galp launched the tender to sell up to 30 LNG cargoes from Nigeria’s Bonny Island liquefaction plant over a period of five years, with 4-6 cargoes offered each year.